The acquisition of The L.S. Starrett Company by MiddleGround Capital represents a significant take-private transaction in the industrial tools sector, concluding the company's 144-year history as a publicly-traded entity. Strategically, this move allows Starrett to transition from the quarterly pressures of the public markets to a private environment where it can focus on long-term operational flexibility and strategic capital deployment. The rationale for the investment centers on MiddleGround's intent to amplify Starrett's iconic brand status by scaling its geographic reach and diversifying its robust range of metrology and cutting tool offerings. The partnership aims to capitalize on key industrial trends, including the resurgence of advanced manufacturing and the reshoring of critical production to North America. Following the shareholder approval and delisting from the New York Stock Exchange, the company will benefit from MiddleGround’s deep operational expertise and financial backing to professionalize its global manufacturing footprint.

L.S. STARRETT COMPANY, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level around LOGIN lower than the average currently observed in the Industry & Manufacturing sector (10.9x).

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